Torrance Industrial Property Trades Hands for $123 Million

Industrial facilities in Torrance continue to trade hands as more firms seek locations to plant flags in the South Bay.

Link Logistics sold a 265,418-square-foot industrial building at 588 Crenshaw Boulevard in an off-market deal for $123 million, or about $463 per square foot, the Los Angeles Business Journal reported. An entity run by Christina K. Wong, president of Asian food provider Golden Star Trading, acquired the asset, Commercial Observer reported.

The buyer secured a $91 million loan from Madison Realty Capital for the acquisition.

Clothing company Next Level Apparel leases the entire property, which contains approximately 15,000 square feet of offices.

The Klabin Company’s Tyler Rollema and Matt Stringfellow represented the buyer in the sale.

The building fetched a higher-than-usual $463 per-square-foot price. The average sale price for industrial facilities in Los Angeles County was $385 per square foot in the fourth quarter, according to Kidder Mathews data cited by the Business Journal. “My client admittedly paid a premium for the opportunity to buy a building of this class and size in a premier location,” Rollema said.

Link Logistics’ Crenshaw Boulevard sale is the latest industrial transaction in Torrance in less than a month. In late December, EQT Exeter Real Estate Income Trust acquired a 76,007-square-foot warehouse for $51.5 million.

In the fourth quarter, Torrance had a higher industrial vacancy rate compared to other South Bay cities and Los Angeles County as a whole. The South Bay submarket’s vacancy rate was 5.7 percent, while Torrance’s was 8.4 percent, according to Colliers data cited by the Business Journal. The elevated figure can likely be attributed to a spike of new industrial facilities completed in the area last year rather than a decline in demand for space, Rollema said.

“Torrance has become a destination for growing aerospace, high-tech, automotive-EV and advanced manufacturing users,” Rollema said. “Part of this draw is due to the city’s amenities, overall image and safety, business-friendly environment and proximity to beach cities for their high-skilled employee base.”

— Chris Malone Méndez